8
Dec
Bank makes mortgage increase pledge
HSBC has said it will increase the amount of mortgage finance
available to UK customers next year, even if this means it is
bucking a downward trend.
The lender has revealed it intends to raise the amount of funding
available to £15 billion, up 20 per cent on this year and
twice as much as was available in 2007.
HSBC managing director Paul Thurston commented that the bank "has
no intention of closing its doors to customers".
This increase in funding may encourage those such as Bank of
England governor Mervyn King, who have argued that the "most
pressing" need for the UK economy to avoid a deeper recession is
for bank lending to rise.
The HSBC decision may indicate that there is more room for optimism
in this respect than suggested last week by the Council of Mortgage
Lenders (CML) director general Michael Coogan.
Speaking at the CML annual conference, Mr Coogan forecast that the
return to 2007 levels of lending that the government wishes to see
will not take place.
